Quantitative Economics Analysis In WTO Dispute Settlement

Multilateral trade framework, which is represented by WTO, played a decisive role in the international community. All the members want to benefit more from the trade liberalization. The nature of trade dispute is no more than the gain and loss of national economic interest, the aim for members to appeal the trade dispute to WTO dispute settlement is to get the interest they deserved through its quasi-judicial process. Whatever the type is, trade dispute eventually need precise calculation and evaluation to find out the nullification or impairment of interest resulting from the restrictive measure, so as to compensate, cease concession, or authorize retaliation. Therefore, to calculate the nullification or impairment of interest resulting from the restrictive measure become a very important issue in solving dispute. It is an innovation and attempt in WTO dispute settlement for bringing in the quantitative economic analysis into the process of determining nullification or impairment. The paper analysis and investigate the quantitative economic analysis in WTO dispute settlement.The paper consist of four parts. The first part affirm the use of quantitative economic analysis in WTO dispute settlement. Quantitative economic analysis presents policy measures on trade as variable and function, establishes the related trade model, calculate the level of nullification or impairment for members, which is resulting from the restrictive measure. The contribution that quantitative economic analysis has done to the WTO dispute settlement reflect in two areas: the first is to quantify the outcome of carrying out the policy measure on trade, as to determine the level of national impairment, basing on which the Panel, Appellate body and arbitrator can exact the level of retaliation; the second is quantify the outcome of competition between the import and domestic, then can obtain the demand situation of certain product...